FOR YOUR INFORMATION............................APRIL 16, 1993

     The Federal Trade Commission has given final approval to
consent agreements with three "information brokers" -- companies
that buy large volumes of credit and other data about individual
consumers at discounted rates, and then resell the data to low-
volume buyers -- settling charges that they failed to adequately
ensure that their customers had legally-permissible purposes for
obtaining the sensitive data.  The agreements also settle other
alleged violations of the Fair Credit Reporting Act (FCRA), the
law governing the accuracy and privacy of consumer reports.

     The settlements are with:

     -- I.R.S.C., Inc., doing business as Information Resource
     Service Company, of Fullerton, California, and Jack H. Reed,
     an officer of the company;

     -- CDB Infotek, based in Orange, California, and its
     president, Rick L. Rozar; and

     -- Inter-Fact Inc., based in Maple Heights, Ohio, and two
     officers, James Polgar and Bruce R. Marks.

     Under the final consent orders, the respondents are required
to take a variety of steps to protect the privacy of consumer
reports in the future.  Specifically, they must obtain from all
new subscribers written certifications stating the projected
number of consumer reports the subscribers expect to order, and
the purposes for which they will be used.  The certifications
must be updated annually.

     The respondents also must verify the identity and business
of each current and prospective subscriber, and that it has a
permissible purpose for the reports and procedures to prevent
unauthorized access to them.  Further, for customers who request

                            - more -
Information Brokers--04/16/93)

consumer reports for employment purposes or for "legitimate busi-
ness needs," the respondents must have them identify and certify
the applicable purpose each time the customers order a report. 
The respondents also must conduct periodic, unannounced audits to
verify that "mixed-use subscribers" -- those who may have both
legal and illegal purposes for obtaining reports -- are using
reports only for permissible purposes.

     The orders also require I.R.S.C., CDB Infotek and Inter-Fact
to stop furnishing consumer reports to any subscriber: (1) they
determine has used a report for an impermissible purpose; or (2)
when there is reason to believe a customer will use reports for
impermissible purposes.

     Finally, the orders require the respondents to notify each
of their customers in writing that, under the FCRA, anyone who
knowingly and willfully obtains a consumer report under false
pretenses could be fined up to $5,000 and sentenced to a year in
prison.

     The Commission vote to issue the consent agreements in final
form was 5-0.

     The consent agreements were placed on the public record on
Aug. 18, 1992, and issued in final form on April 14.  (Docket
Nos. C-3422 - 3424)

NOTE:  Consent agreements are for settlement purposes only and do
not constitute admissions of law violations.  When the Commission
issues a consent order on a final basis, it carries the force of
law with respect to future actions.  Each violation of such an
order may result in a civil penalty of up to $10,000.

     A news release summarizing the complaints and consent agree-
ments was issued at the time the Commission accepted the consent
agreements for public comment.  Copies of that release and of the
final orders are available from the FTC's Public Reference
Branch, Room 130, 6th Street & Pennsylvania Avenue, N.W., Wash-
ington, D.C.  20580; 202-326-2222; TTY for the hearing impaired
1-866-653-4261.
                              # # #

MEDIA CONTACT:      Bonnie Jansen, Office of Public Affairs
                    202-326-2161

STAFF CONTACT:      David Medine, Bureau of Consumer Protection
                    202-326-3224

FTC File Nos.: I.R.S.C. -- 902 3030
               CDB Infotek -- 902 3100
               Inter-Fact -- 902 3031
(sbureau2)